If you sold your Apple stock today, you’re an idiot

“Before I begin, two points: 1) I do not own any Apple stock. I have absolutely no interest in whether the stock goes up or down. 2) One can make an argument that there may be other reasons to sell Apple’s stock now (namely, uncertainty following the passing of Steve Jobs), I’m simply arguing that the stock’s collapse today due to yesterday’s earnings is laughable,” MG Siegler writes for TechCrunch.

“Watching the stock market following Apple’s Q4 earnings yesterday and into today, I’m reminded of a famous Steve Jobs quote, ‘If you see a stylus, they blew it,'” Siegler writes. “Reworked, the quote today would be: ‘If you’re investing based on Apple analysts, you blew it.'”

Siegler writes, “Apple’s stock dropped 23.62 points today — over 5.5 percent. It went from an all-time closing high of $422 a share, to under $400 a share. Why? Again, the earnings announced yesterday. For the first time in something like 9 years, Apple failed to beat Wall Street’s expectations. But here’s the thing: those expectations were ridiculous and flawed and once again show that analysts have no idea what they’re talking about when it comes to Apple.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]

32 Comments

  1. This guy nails it, the ANALysts were off their Meds (Preparation H) and those of us with a lot invested and using our profits to better ours houses and lives are getting screwed! It will never end!!

    1. MG Siegler has this right. The ANALysts set goals that only God could exceed. Other than a few weeks shift on iPhone 4S release and the EXPECTED STALL while people held off for the new model, Apple crushed the numbers. This was a great report and greater next quarter targets.

      The ANALysts were way off and Apple exceeded their target by 10%. So, who screwed up? Not Apple.

      I wish the next time Apple talks about the Mac growth that they strip it out of the total PC growth. The non Mac growth was a negative number! The total is positive only because of the Mac growth. THe non Mac market is shrinking now.

    1. What a neat thought:
      •   Analysts held accountable for their prognostications
      •   Advertisers held to provable statements (similar to the UK)
      •   Politicians held to demonstrable truth in statements with no buffoonery allowed.
      What a different country this would be!

      1. Or the better idea…

        All speech is free, and each individual is responsible for how they process it.

        There’s no way to maintain an impartial enough authority to judge each piece of speech or advertisement. Censorship isn’t a protection, its a loss of liberty.

        1. Of course I support free speech but there have to be limits. The US and UK have libel laws and the impartial people you refer to are the judges.

          I do find the lacklustre regulation around advertising in the US quite shocking compared to the UK whenever I’m visiting the US. These are not individuals expressing opinions, they are huge corporations who sometimes make claims they can’t back up. For example Samsung cannot advertise their phone as the thinnest in the UK because the Advertising Standards Agency found it wasn’t – you can’t just measure the thinnest part. Advertisers must be able to prove any claim made, recognising the power imbalance between consumers and corporations. Apple fell fowl of the regulators here for claiming the first iPhone had the “full Internet” because of te lack of flash. Apple also state “sequences shortened” when their ads show apps being used in TV ads. This is the norm over here and in my opinion it is not a free speech issue.

          Analysts on the other hand are just analysists. The issue is that stock is increasingly traded automatically by computer programs and based on analysists’ projections. The real humans tend to correct this a few hours or days later.

  2. Always look at the fundamentals of a company. Apple is still firing with all cylinders. iOS 5 is fantastic, Siri is ground braking, Lion is amazing and all the hardware is best in there class. The only thing that can be troublesome for Apple would be circumstances beyond it’s control, like a world global recession, that seem to be brewing.

  3. Had Apple simply renamed iPhone 5 – made a few cosmetic changes and released in early September they would of blown past the expected sales …. but Apple didn’t and for good reason …..

    Next quarter they will once again miss but this time Apple will sell more than they think ….

    1. All Marketing-Morons were culled from Apple when entrepreneurial Steve Jobs took back the CEO position. Only Marketing-Mavens allowed. Apple are not going to let the Marketing-Morons back through the door. Therefore, It’s called what it is: The iPhone 4S.

      To all those who believed the iPhone 5 hyperbole: 😆

  4. Everyone keeps saying that if Apple had released 4s (or called it 5) that their sales would’ve been better. But then they would’ve turned out a product that was not ready or doing cheap marketing tricks, and then they would be mediocre, like Dell.

    This is where Apple truly thinks different than the rest of corporate America: they would rather release nothing and take a short term hit in their stock price than release crap.

    Thank you, Apple, for not releasing crap. (Disclosure: Long on aapl)

  5. Too much of the market is based on emotions of late. Apple’s fundamentals are excellent. iPad and iPod are leading their market area by a large margin. The iPhone is very popular too. That doesn’t even include the iMac, which is the computer of choice of consumers spending $1,000+.

    Part of this is expectations and part of this is the lost of Steve Jobs. That matter to Wall Street until a few products take off with Cook.

    1. i wouldn’t be surprised, but it could also be a gradual climb. next earnings will be a good time. apple under promises and over delivers- that has never changed since they began their odyssey from $8 a share.

      people have to start looking at apple as a whole- and past steve jobs. I haven’t seen much of that with analysts. then we’ll be over these humps.

      i keep hoping for the day- but shit keeps coming up. could you imagine if apple had all their gears churning for the dot com era?

  6. if you sold without massive weight to buy back in on the ridiculous dip, and if you haven’t bought some today, you are an idiot.

    this shit is too priceless. Does anyone doubt AAPL won’t be dissected by future generations on how to run a corporation? They haven’t revolutionized anything more than how to build a company from the ground up- in two different scenarios- form start up and from bankrupt. outside of putting AI in everyone’s pocket- that’s another Steve Jobs legacy.

  7. > Siegler writes, “Apple’s stock dropped 23.62 points today — over 5.5 percent…

    Instead, he should have said, “AAPL dropped 23.62 today, which is ONLY about 5.5%.”

    The investors who are attention-span-challenged (and rely on “analysts”) don’t seem to recall that about two weeks ago, AAPL was under $360. And now it’s around $400. That’s UP over 10% during that period. If you go back a few months, it’s been as low as $315.

    A $20 drop was a big deal when AAPL was $100. Now, it’s more like a “blip,” and AAPL has been having more upward blips lately.

  8. Yeah, don’t sell today. Wait until it hits 420 one more time and then kiss it all goodbye.

    It has been a good run, but it is all over. Doesn’t matter what they do, AAPL is about to be unfairly punished again, simply because of supply (of stock) and demand (for money).

    Don’t kill the messenger. Farewell Steve. You finally won and went out on top.

    1. Clearly you’re out of the (Infinite) Loop.
      Very recently, as SJ bowed out of Apple for good, he said:

      ‘…. and the best is yet to come.’

      What on earth can anyone naysay against that description of Apple’s future by the one and only person truly qualified to know everything in the company’s pipeline?

      Silly.

      Hold and buy more. I did, at $396.

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